HM Treasury

Protocol to the Double Taxation Convention between the United Kingdom and Uzbekistan

Mel Stride: A Protocol to the Double Taxation Convention with Uzbekistan was signed on 24 January 2018. The text of the Protocol is available on HM Revenue and Customs’ pages of the Gov.uk website and will be deposited in the Libraries of both Houses. The text will be scheduled to a draft Order in Council and laid before the House of Commons in due course.


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Home Office

Police Funding

Mr Nick Hurd: My rt hon Friend, the Home Secretary, has today laid before the House, the Police Grant Report (England and Wales) 2018/19 (HC 745) for the approval of the House. The report sets out the Home Secretary’s determination for 2018/19 of the aggregate amount of grant that she proposes to pay under section 46(2) of the Police Act 1996.Before announcing the Government’s proposals, I visited or spoke with every police force in England and Wales to better understand the demands they face and how these can best be managed. I saw for myself the exceptional attitude and hard work of police officers and staff around the country. I have also carefully considered the responses to the consultation on the provisional Police Grant Report.The Government is committed to protecting the public and providing the resources necessary for the police to do their critical work. We have listened to the police and recognised the demands they face. That is why I can confirm that the allocations that have been laid before the House today are the same as those proposed in my Statement of 19 December 2017. These proposals increase total investment in the police system by up to £450m year on year in 2018/19.In 2018/19, we will provide each Police & Crime Commissioner (PCC) with the same amount of core Government grant funding as in 2017/18. Protecting police grant means PCCs retain the full benefit from any additional local Council Tax income.Alongside this, we are providing flexibility to PCCs in England to increase their Band D precept by up to £12 in 2018/19 without the need to call a local referendum, equivalent to up to £1 per month for a typical Band D household. These changes give PCCs the flexibility to increase their funding by up to around £270m next year. Each PCC who uses this flexibility will be able to increase their direct resource funding by at least an estimated 1.6%, maintaining their funding in real terms. Most PCCs are intending to use the new precept flexibility.We will also increase investment in national policing priorities such as police technology and Special Grant by around £130m compared to 2017/18. This reflects our commitment to support the police to deliver a modern digitally enabled workforce, and to manage major events such as the Commonwealth Summit and terrorist attacks. We will maintain the size of the Police Transformation Fund at £175 million in order to help drive police reform.Counter-terrorism police will receive a £50m (7%) increase in like for like funding when compared to 2017/18. This will enable the counter-terrorism budget to increase to at least £757m, including £29m for an uplift in armed policing from the Police Transformation Fund. This is a significant additional investment in the vital work of counter-terrorism police officers across the country. PCCs will be notified of force allocations separately. These will not be made public for security reasons.In addition to the police funding settlement, the Government is taking decisive action to tackle the increasingly sophisticated cyber threat we face through the National Cyber Security Strategy, which is supported by a £1.9billion programme of transformational investment from 2016 to 2021. The Law Enforcement response to tackling cyber crime is an essential element of our national strategy, with the Home Office investing £30m of National Cyber Security Programme funding in 2017/18 to support and develop the law enforcement response at the national, regional and local level. We will continue to invest in law enforcement capability throughout the lifetime of the programme.As I set out in my statement of 19 December, the increase in funding to PCCs in 2018/19 must be matched by a serious commitment from PCCs and chief constables to reform by improving productivity and efficiency to deliver a better, more transparent service to the public. Since that statement, I have written to the Association of Police and Crime Commissioners and the National Police Chiefs Council seeking their proposals to deliver further efficiencies. Following these proposals, we will agree appropriate milestones for delivery in 2018. If the police deliver clear and substantial progress against the agreed milestones on productivity and efficiency in 2018, then the Government intends to maintain the protection of a broadly flat police grant in 2019/20 and repeat the same flexibility of the precept, i.e. allowing PCCs to increase their Band D precept by a further up to £12 in 2019/20. This approach gives policing the opportunity to make major improvements in efficiency, and use those gains to improve services to the public.Since December, the Home Office has continued to work with the police to identify potential procurement savings. We have identified a further £20m of potential procurement savings starting in 2018/19, taking the total to over £120m.In December I highlighted the opportunity for policing to save up to 1 hour per officer shift through mobile digital working, potentially releasing the equivalent of 11,000 police officers who can be deployed to meet changing demands. Since December I have established a small team who will work with the police through 2018 to audit the level of opportunity from mobile working, identify which approaches work best, highlight best practice, and help forces and the Home Office take the right decisions to maximise the gains from the use of mobile digital working.We are also today publishing comparable national information on the financial reserves held by PCCs to assist the public in holding PCCs to account. As at March 2017 PCCs held usable resource reserves of over £1.6bn. This compares to £1.4bn in 2011. Current reserves held represent 15% of annual police funding to PCCs. There are wide variations between forces with Gwent for example holding 42% and Northumbria holding close to 7%. This is public money and the public are entitled to more information around police plans for reserves and how those plans will support more effective policing. So I am also today writing to PCCs setting out new guidance requiring them to publish their reserves strategies in plain English, with a clear justification for each reserve held.I have set out in a separate document (attached) the tables illustrating how we propose to allocate the police funding settlement between the different funding streams and between Police & Crime Commissioners for 2018/19. These documents are intended to be read together.



Police funding settlement tables
(PDF Document, 74.34 KB)





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Ministry of Defence

Defence Equipment Plan

Guto Bebb: I am pleased to place in the Library of the House this year’s financial summary of the Defence Equipment Plan. This is the sixth consecutive annual publication of the equipment plan summary, and demonstrates the Ministry of Defence’s investment and the need to continue progress in driving improvements, reform and efficiency, with a plan to spend £180 billion on equipment and support over the decade out to 2026-27 which will provide our Armed Forces with the capability they need. The Government remains committed to the Defence Budget increasing by 0.5% above inflation each year and the Department is focusing on where best to invest across the entire Defence programme in order to remain on top of an ever-changing and increasing threat environment. However, it was evident following the 2016 annual planning cycle that both uncertainty and risk had increased in the Equipment Plan. It did not, unfortunately, prove possible to address these issues satisfactorily in the 2017 Annual Budget Cycle (ABC17) as a result of which, the Equipment Plan emerging from ABC17 contains a high level of financial risk and an imbalance between cost and budget. These risks have informed the Department’s work on the National Security Capability Review and associated work in the 2018 Annual Budget Cycle. The Department recently launched the Modernising Defence Programme. We aim to use this work to deliver better military capability and value for money in a sustainable and affordable way, and to ensure that defence capabilities complement other national security capabilities in the most effective way.

Foreign and Commonwealth Office

Foreign and Commonwealth Office: Global Estate Update

Alistair Burt: I announce today the planned move of the Bangkok Embassy in Thailand. The new embassy building will be based in the AIA Sathorn Tower and will provide a modern, dedicated base from which diplomats can work to promote UK interests in Thailand.We anticipate moving into the new offices in 2019, until which point we will lease back our existing embassy site to keep disruption to a minimum. Our embassy will continue to provide essential consular services to British holidaymakers and business people, and to work with the Thai authorities on preventing child exploitation, organised crime, money laundering and human trafficking.Our new and improved embassy will allow us to take this activity to the next level, including by strengthening our trade links, enhancing our strong collaboration on science and innovation, and maintaining our focus on supporting human rights defenders and promoting freedom of expression. The new embassy will demonstrate our long-term commitment to our relationship with Thailand – a key partner for the UK’s security and prosperity interests and leading member of the Association of South East Asian Nations (ASEAN).The completion of the sale of the current Bangkok Embassy compound in Thailand is the biggest land deal in Thai history and the Foreign and Commonwealth Office’s (FCO’s) biggest ever sale, raising at least £420 million.This deal is the result of considerable work by the FCO. The funds released will allow us to begin work on 30 to 40 major long-planned Estates projects, and enable us to continue to update and modernise our global estate so that it meets our aspiration to provide a world-class platform for diplomacy.


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Attorney General

Serious Fraud Office (Contingencies Fund Advance)

Robert Buckland: I would like to inform the House that a cash advance from the Contingencies Fund has been sought for the Serious Fraud Office (SFO).In line with the current arrangement for SFO funding agreed with HM Treasury, the SFO will be submitting a Reserve claim as part of the Supplementary Estimate process for 2017-18.The advance is required to meet a current cash requirement on existing services pending Parliamentary approval of the 2017-18 Supplementary Estimate. The Supplementary Estimate will seek an increase in both the Resource Departmental Expenditure Limit and the net cash requirement in order to cover the cost of significant investigations.Parliamentary approval for additional resources of £9,500,000 will be sought in a Supplementary Estimate for the Serious Fraud Office. Pending that approval, urgent expenditure estimated at £9,500,000 will be met by repayable cash advances from the Contingencies Fund.The advance will be repaid upon Royal Assent of the Supply and Appropriation (Anticipation and Adjustments) Bill.